Overview
- Average monthly payments for new vehicles reached about $760 in November after typical prices topped $50,000, according to J.D. Power.
- In the third quarter, 30.5% of new-car buyers took loans of at least 72 months, with 85–96 month loans rising to 1.61% through October and some stretching to 100 months.
- Total U.S. auto-loan debt hit $1.66 trillion in the third quarter, and reports indicate some borrowers are starting to fall behind on payments.
- The average new loan exceeded $42,000 this year, Chase Auto said, as buyers trade higher total interest for lower monthly bills.
- Automakers are pushing lower-price options, with Ford buyers gravitating to base trims and Jeep cutting prices to bring more models under $50,000, while the White House directed regulators to open a path for smaller, cheaper cars that currently fall short of safety rules.